Canadian electric utility TransAlta has completed the previously announced C$1.38bn ($1.01bn) cash and stock acquisition of renewable independent power producer (IPP) TransAlta Renewables.

Prior to the deal announced in July 2023, TransAlta and its affiliates collectively held nearly 160 million shares of TransAlta Renewables. It represented 60.1% of the issued and outstanding shares of the renewable IPP.

As per the terms of the acquisition, shareholders of TransAlta Renewables had the choice to either receive 1.0337 TransAlta shares or C$13 ($9.47) in cash.

The shareholders holding about 70 million shares chose to receive an aggregate of approximately 72 million TransAlta shares while the shareholders with about 37 million shares opted to receive about C$478m ($348.2m) in cash.

TransAlta will increase the cash consideration to nearly C$800m ($582.89m) after pro rationing.

Following the completion of the deal, shares of TransAlta Renewables will be delisted from the Toronto Stock Exchange.

Based in Canada, the renewable IPP holds stakes in 26 wind facilities, eight natural gas generation facilities, 11 hydroelectric facilities, two solar power plants, one natural gas pipeline, and a battery storage asset.

It represents an ownership stake of nearly 3GW of owned generating capacity with assets located in Canada, the US, and Australia.

Through the takeover, TransAlta will create a single, publicly traded entity with one strategy and a streamlined governance structure that supports growth.

The combined company is expected to provide greater clarity around the execution of the clean electricity growth plan.

Furthermore, the merged entity will have unified and direct ownership interests in a diversified portfolio of wind, hydro, solar, storage, and natural gas generation assets.